Correlation Between ABACUS STORAGE and Midway
Can any of the company-specific risk be diversified away by investing in both ABACUS STORAGE and Midway at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ABACUS STORAGE and Midway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABACUS STORAGE KING and Midway, you can compare the effects of market volatilities on ABACUS STORAGE and Midway and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ABACUS STORAGE with a short position of Midway. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABACUS STORAGE and Midway.
Diversification Opportunities for ABACUS STORAGE and Midway
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABACUS and Midway is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ABACUS STORAGE KING and Midway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midway and ABACUS STORAGE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ABACUS STORAGE KING are associated (or correlated) with Midway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midway has no effect on the direction of ABACUS STORAGE i.e., ABACUS STORAGE and Midway go up and down completely randomly.
Pair Corralation between ABACUS STORAGE and Midway
Assuming the 90 days trading horizon ABACUS STORAGE KING is expected to under-perform the Midway. But the stock apears to be less risky and, when comparing its historical volatility, ABACUS STORAGE KING is 11.06 times less risky than Midway. The stock trades about -0.12 of its potential returns per unit of risk. The Midway is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Midway on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Midway or generate 56.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ABACUS STORAGE KING vs. Midway
Performance |
| Timeline |
| ABACUS STORAGE KING |
| Midway |
ABACUS STORAGE and Midway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABACUS STORAGE and Midway
The main advantage of trading using opposite ABACUS STORAGE and Midway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABACUS STORAGE position performs unexpectedly, Midway can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Midway will offset losses from the drop in Midway's long position.| ABACUS STORAGE vs. Westpac Banking | ABACUS STORAGE vs. Odyssey Energy | ABACUS STORAGE vs. Imricor Medical Systems | ABACUS STORAGE vs. Midway |
| Midway vs. Hudson Investment Group | Midway vs. EMvision Medical Devices | Midway vs. REGAL ASIAN INVESTMENTS | Midway vs. Carlton Investments |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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